T. Rowe Price Makes Clear Activists Do Not Act at Its Request

In June 2018, T. Rowe Price published a memo on its role in activist campaigns. The memo made clear that in almost all cases T. Rowe Price does not believe its role is to initiate activist campaigns. Instead, it judges each campaign on its merits and backs the party most likely to deliver “sustainable, long-term performance.” Some have argued recently that at the outset of a new campaign, activists often enjoy the tacit support of institutional investors and may even have been invited by them into the stock. In the memo, T. Rowe Price emphasized that it has “adopted internal policies prohibiting [its] investment personnel from attempting to initiate an activism campaign indirectly, such as by discussing or pitching ideas to activist investors or other outside parties.” It made clear that any activist or any other investor claims representing T. Rowe Price’s view on any investment or voting matter should be disregarded.